Posts Tagged ‘Finances’

Tips for small Business Finances in the New Year

One recent poll asked entrepreneurs what they personally believe affects the success or failure of a startup company. The 549 founders came from all kinds of industries: computing, electronics, health care, aerospace and defense.

The top most critical success factors included learning from their mistakes and their successes, previous work experience, a good strong management team and good luck. 98 percent said prior work experience was a very important factor.

Some of the most common questions asked on the government’s Small Business Administration (SBA) website are: How do I get a small business loan … or grant? How do I get started in a business? How do I find an investor for my business? What are the interest rates, and terms or fees that the SBA requires on its Guarantee Loan program?

As small business entrepreneurs head into 2010, following are some real tried and true financial aids that can help any business grow.

Do not waste money anymore. By using good financial strategies, you can stick to the plan to help lower operating expenses. Review your expenses to make sure you are not paying double for anything. Just like public companies, review the year in quarters (Q1: January through March)and then set aside time each quarter to review your financials. You will most certainly find areas to cut back.

For example: Do you rent or lease a car or truck? Did you know that a company vehicle is best purchased because they can be depreciated on your company tax returns. Plus you’ll get a higher return on your investment after the vehicle has been paid off, than leasing. However, think about leasing your computers, which is usually a tax deduction, so that you can always trade them in for newer technology when the time comes.

Now more popular than ever before, another financial business strategy is to begin factoring your outstanding invoices. An invoice that won’t be paid for 60 to 90 days isn’t doing your company any good today. However if you find a factoring company to factor one or more of your outstanding invoices, you can use the money wisely to invest in your business and grow faster. Many factors today do what is called “single invoice factoring” where they will spot one invoice at a time.

Accounts receivable factoring is particularly helpful if you need cash in a hurry because once a factor receives your application and reviews your invoices, you can receive payment within as little as 24 to 48 hours after they have pre-qualified the vendor that owes you the money. Remember your credit isn’t checked, but the vendor that owers you the money will be pre-qualified by the factor.

Factoring companies, just like a bank or any commercial financial institution, charges a fee for its services. A factoring company will first examine your invoices and check the creditworthiness of your customers. You should be prepared to show the factor these following: 1) A current financial statement; 2) An accounts receivable aging report; 3) A certificate of incorporation or partnership; agreement; 4) Proof of insurance; and 5) Your company’s outstanding invoices and other business documents.

A factor will take charge of collecting your receivables, so they will want to make sure your customers pay their invoices on time. Once you have selected which invoices the factor will purchase, they will typically pay you an advance; for example, the factor might pay you 80 percent of the total amount of your invoices and then reimburse you the other 20 percent once your customers pays the invoices.

Factors get anywhere from 3 percent to 7 percent or more of the total they collect. Factors’ fees vary depending on the size of your invoices, your customers’ creditworthiness and the number of days (30/60/90) until the invoice is due.

ACC501 Business Finance

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Organizing your SMC Business Finances to make it a more effective Force to Reckon with

The SMC Corp. system is in a way, like getting a franchise. Because there is a ready system to work with, you may be tempted to let the business run its own course. This is one of the biggest mistakes business starters often make. Like any business, you have to establish and play with a system that works for you too, incorporating SMC’s system along with it.

Set a series of Regular Short-term Goals

One of the advices given by SMC Corp.’s online business school is this: Set up attainable short-term goals. Attainable is relative to the person who’s using it. For some, one retail customer a week is attainable. For others, 5 customers a week are attainable as well. It doesn’t matter what the quantity of the goal is, the important thing is to come out with a series of regular and measurable goals. That way you get to feel like you’re experiencing a constant high from the win.

Learn to celebrate these milestones as well. A positive attitude goes a long way when it comes to sales and selling. They can actually rub off on customers. If you feel good about the products you are selling then customers will also be happy to buy from you.

Work with the Numbers, not against it

Setting up a budget for your business is a difficult process. There are plenty of hidden costs which have to be carefully incorporated in those numbers and a lot of visible expenses as well. But more importantly, numbers give you a realistic notion of what you will achieve for the first six months or even for the year.

A realistic goal is one which comes out after most of the expenses have been plotted. Be careful that you don’t scrimp too much on the necessities just to attain your financial goal. For example, if you’ve seen a pattern that your phone bill still reaches 0 after 4 months and your budget for it is 0, then by all means, change it. This is what’s meant by working with the numbers.

Compensate in some other areas

If you really cannot reach the expected revenues, then find some areas where you can cut off. In the same light, maybe big expenses like revamping your website or getting a new set of catalogues midyear is not the best idea. Although SMC coaches might suggest that you do so otherwise, you are the best judge for your business.

Put in some savings

While it is good to invest on fast growth especially on a business that grows as fast as SMC does, it would also be wise to leave some money behind to serve as cushion. Like any business, diligence is an important factor. But there are also market trends to consider. There are some months which have low revenues and some with high, so to compensate for the low months, make sure you set up some money aside.

 

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Budget your Business Finances

Lessen the percentage of the possibility of your business’ financial struggle

 

Keep these tips in mind and breathe freely on your business financial stability. Financial peace of mind is one of the most important issue business men are dealing with. However simple or complex the nature of your business could be, budgeting is crucial on your business’ success, and it is best if you keep the budget presentation simple and clear

 

Business budgeting is absolute in every company regardless of how large or small the business is. Proper business budgeting can help business owners to plan and achieve their goals and stay in track despite difficult or unexpected financial situations.

Business budgeting is not as difficult as it sounds because it is simply financial planning. Primarily, be very cautious when creating your budget. What you have to make sure is that all information is accurate and up-to-date for effective business budgeting.

 

• INCOME & EXPENSES ESTIMATION –
Business budgeting relies on your expenses and income within a specified timeframe.

-   Your income should include the payments gathered from gross revenue, interests, accounts receivable and other sources.

-   For the company expenses, all monetary resource that leaves the company should be included. Such expenses include pay sheet, materials, utilities, real estate so on and so forth.

 

In spite of how cautiously you plan, there is no doubt that you will come across with unpredicted expenses as you run your business. This makes it very important for you to save some tolerance and consider them in your business financial plan.

Also, it is a good thing to consider the time when both income and operating costs will be incurred. In this case, if you run a business that is seasonal, there are months in which your sales will undeniably go down. In this case, it is important to make sure to adjust the budget accordingly for the lean months.

 

• BUDGET IN A SPECIFIC TIME FRAME –
Your business budgeting should be prepared within a set period.  The budget is most of the time based on the company’s fiscal year or you can also project a budget on a every month or quarterly basis.
It is recommended that you break down your budget on a monthly basis even if you have already prepared it on your business’ fiscal year. To make your business budgeting easy, consider using a financial program or software.

 

• BE REALISTIC –
Business budgeting should also be based on numbers that is backed up by rational expectations. These expectations should be based on both previous projected business developments and business financial performance.

 

-   Hire a cheap CPA or financial analyst virtual assistant, or someone to be monitored in your office.

-   Make sure he is excellent in Excel, PowerPoint, Accounting systems, Communications, management information system (MIS), and Very Good English skills- verbal and written.

 

Try these tips to help grow your business. To be honest, business budgeting is not easy but like a lot of things the more you use it the easier it will become and you can be sure that you will encounter lesser financial problems in your company.

 

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How to Manage Your Business Finances by Estimating Your Costs

If you have effectively analyzed your target markets, put into place an attention getting promotional plan and learned how to demonstrate the benefits of dealing with your company, you will start to receive money in return for providing satisfaction.

 When people see that you keep your promises they will develop a loyalty to you and your business which will result in repeat sales. But a word of warning: earning money by selling to someone is only theoretical until you collect it! There are a million reasons why someone can delay paying you. And if you are not careful you can lose control of where the money goes once it arrives on your desk.

 There are five parts to an effective financial management system for your small business: estimating costs and living by a budget; making frequent projections of profit and cash; developing a reliable collection technique and expense control program maintaining a dependable accounting system; and managing your tax situation. We will discuss the first strategy in this column.

 There are many more people with good ideas than there are people who also demonstrate discipline in handling their business’s money. Some say that one of the main reasons businesses fail is because of lack of money.

 We believe that it is because of lack of control of money. Don’t be overwhelmed. There are many convenient ways to learn how to manage your money–seminars at local colleges and Small Business Development Centers, do-it-yourself books, computer programs and government tax classes to mention just a few. In only a few hours per week you can create a sound system for managing your money.

 Let’s take a look at the first step in setting up a reliable financial management system: financial estimates.

 Checking Your Personal Financial Situation

 Not starting with enough cash, known technically as being “undercapitalized”, is probably second only to not researching your business concept as a major cause of small business failure. This outcome is usually the result of inadequate advance planning during the pre-launch phase.

 First and foremost you must estimate what your family expenses are and how you will assure that your business income is sufficient to pay them. You should sit down with your family and honestly discuss the minimum amount of money the household must have each month to provide security. Ask each member of the family to offer one or two areas where some expense can be reduced.

 In addition to knowing your living costs, you must also be brutally honest about your current debt situation. During the 1980′s many families found themselves taking on increased debt in order to just get by. If you family is one of them, you should be realistic about your ability to take on more financial responsibility. New businesses almost always require more money to keep them running than the new owners estimate before starting. Remember: every dollar you must pay each month for credit card payments is a dollar not available to invest in marketing your new company.

 To help you calculate your current personal financial situation you can use the My Current Financial Situation Worksheet below.

 My Current Financial Situation

Monthly Income
Assets

My Paycheck

Cash On Hand

Spouse’s Pay
Car

Unemployment Payements
Property

Other
Furnishings

Total Income
Other Assets

Fixed Monthly Expenses
Total Assets

Car
Liabilities

Mortgage/Rent
Bank Loans

Utilities
Credit Cards

Groceries
Other Debt

Other
Total Liabilities

Variable Monthly Expense
Assets Minus iabilities(Networth)

Clothes
 

Entertainment
 

Gas/Oil
 

Other
 

Other Expenses
 

Insurance
 

Day Care
 

Other
 

Total Expenses
 

Income Minus Expenses
 
* “The Business Burden”

 When you look at your monthly family income, you should consider what will happen financially if you quit your job to pursue your business full-time. Your expenses will not decrease much, but your income sure will. The difference between the family expenses and the family income other than yours can be called the “business burden.” What this means is that unless you want your family’s lifestyle to change dramatically, you must produce enough revenue from the business to cover the shortfall between expenses and the other household income. Every month that you do not produce enough sales to cover this amount, you must borrow to keep the family going.

 Estimating Business Start-up Costs

 In addition to providing enough money to pay your family living expenses for two-three months, you will need money to pay for a variety of one-time expenditures necessary to set up your business. Let’s take a look at typical expense categories required in setting up a new business:

 Office Space
As locating one’s business at home becomes more acceptable, larger numbers of new businesses are able to save a major start-up expenses–rent. Renting an outside office, retail store, or warehouse space results in some significant startup expenses. Included among these are:

 Rent deposits, usually one full month’s rent, which can range from 0 to over $ 1 000.

 Utility deposits, averaging $ 100 per utility.

 Insurance, costing from 0 to 00 per year — retail stores must often have plate glass insurance in addition to general business insurance.

 Phone line installation, starting at per line, without any inside wire location work included.

 Redecorating & renovation, which you sometimes can negotiate with the landlord to include this in your base rent.You usually must sign a multi-year lease to receive this however. This expense runs from 0 (you do the painting) to several thousand if you must build walls and add doors and windows.

 Furnishings are needed whether you locate your office at home or in outside space. Most offices will require at a minimum a desk, chair, lamp, file cabinet and a bookcase or bookshelves. Additionally, you may wish to have a separate computer table. If you give yourself several months to search, you can often find used furnishings at house sales, bankruptcy auctions, and furniture resellers. A little touch-up paint and cleaning and used furniture can work quite well. You had better plan for 0 – 0 for furnishings.

 Equipment

 Wise use of electronic equipment can allow you to run your one-person business as professionally as your larger competitors. This is one category of expenditure where it pays to shop as the prices are continually dropping.

 Telephones. Can be found in discount stores and catalogs, as well as direct from the phone companies. Plan on spending .00 for a reliable one-line phone and .00 for a good two-line phone.
Telefax. Increasingly just having a phone is not enough. Your customers expect to be able to send you something immediately by fax. Coated paper faxes run about 5.00 and plain paper faxes cost around 0.00
Computer. Take your pick! What a variety is available today. Currently some of the best deals are from Compaq and Apple. Learn what the main computer words mean and how a particular feature affects speed or ease of use. Then go around to both computer and discount stores to compare. And don’t forget catalog sellers such as Dell and Gateway, both of which make excellent computers. There are networks for buying used computers and a new chain of franchises sellers of used computers called Computer Renaissance, but it is probably not smart for a new small business computer user to buy a used computer.
Copiers. Rarely needed by a new business and are really an expensive luxury because of their tendency to break down. Rebuilt copiers with many high-speed features can be bought for under ,000.00.

 Inventory

 Retail stores require stock before they can open for business. Often the initial stock to fill a 500 square foot store (25′x 20′) costs over ,000.00.
Manufacturers are well advised to have a supply of raw materials on hand when they start so that they can keep up with orders. Industrial supply and material suppliers often insist on selling in minimum quantities which are larger than you need in the beginning, but which you must buy in order to get any materials. This often results in significant costs to you.

 Telecommunications

 At a minimum your business will require one telephone line and a telephone to attach to it. You may be able to get by for some time with your existing residential phone line, thereby avoiding a connect charge. If, however, one line is not enough to take all of the calls or if you wish a second line to transmit and receive telefaxes, it will cost you a minimum of to connect the line. Any inside installation is extra. Local phone companies bill their inside installation time at /hour.

 Consider also your needs for: phone message handling, cans made outside of your office and paging. An answering machine may be sufficient to handle calls when you are not in. But perhaps you feel that your customers demand a real live person to answer your phone. This increases your start-up costs to hire a receptionist or a live answering service, which charge around /month. Special phone features, such as call waiting, call forwarding or caller ID carry installation charges of – apiece. Keep an eye open for occasional deals that combine features for one, low cost.

Cellular phones often run over $ 1 00 to install and set-up and pagers often require a 0 deposit. These costs should be figured into your start-up cost estimates.

 Licenses, Fees and Permits

 Common start-up costs in this category include: assumed name registration fees, ranging from to , incorporation fees of $ 100 and up, business licenses starting at , health permits sometimes costing several hundred dollars, and state-issued licenses such cosmetology licenses, which can cost up to $ 1000 per year.

 Insurance

 If you are starting a typical home-based service business, your renters or homeowners insurance may cover your business equipment, supplies and inventory. But it may not, so be cautious and call your home insurance agent before you open for business to check the policy coverage. Often a small additional fee, known as a rider, will increase your home insurance to cover equipment such as a business computer, telephone and fax machine. If you need a rider, figure on adding to your start-up costs.

 Stationery

 To promote a professional, established image for your business, have well-designed and printed letterhead, envelopes and business cards done. Quick printers and office supply warehouse stores, such as Office Max and Office Depot, offer very attractive prices on packages. For example, Office Max in Chicago offers 500 letterhead, 500 envelopes, 500 business cards and 200 invoices for .95. You have limited ink colors, paper styles and typefaces to choose from, but this type of package can start you off with a sharp look to your business.

 Recently introduced are software programs that present miniature outlines of letterhead, envelopes, business cards, brochures, etc. on your computer screen to guide you in inserting your own selling text. The paper is pre-printed with 34 colors at the factory and you add the black text on your computer printer.

 Professional Fees

 If your are considering incorporating your business, need contract forms setup, will deal with import/export, want to set up distributors or require any other legal guidance, you had better budget 5-7 hours of a lawyers time. Good business attorneys charge between and 5 per hour, so you would need to set aside 0 to $ 1 000 in start-up investment for legal help.

 If you are going to open a retail store, a wholesale company or a manufacturing company you would be wise to consult an accountant before you launch. The accounting systems to support these types of businesses can be complicated. You can expect yourself to understand all of the details. Better yet, budget 0- 00 in start-up investment to cover accountant’s fees.

 Promotional Costs

 The previous start-up expense categories discussed in this article are important to prepare the operation of your new company. The last category, promotional costs, includes investments in gaining critically important sales for your new venture.

We recommend, at a minimum, that you invest in designing, printing and mailing of flyer to announce that you are in business, what you offer, where you will offer it and how to get hold of you. If you are experienced in using a word processing or desktop publishing program, you can design, layout and typeset your own flyer. Taking the original copy to a photocopy store and having several hundred run on eye-catching paper will cost you- less then . Add in – for postage and you will have your initial promotion underway.

 You can, of course, plan and execute much more elaborate initial promotion, everything from a grand opening party for your retail store to a 10-city seminar series for your consulting company. Budgets for this type of promotion can run well over ,000. The key to successful cash management here is to plan ahead. Allow 2-3 months before your official opening to research promotional alternatives and their costs.

 Summing It Up

 When you total up all of the categories of start-up expense, you may be amazed at the total. If you include a computer, start-up costs can easily run over 00, without any cash contribution toward your personal living expenses. Advance planning is the key, because you should try to avoid borrowing the money to pay start-up costs. You will need to borrow later to stay in business. Borrowing before you start puts you in the credit hole before you have started to market your company.

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Accountants Help Keep Your Business Finances Healthy

Your business runs on your finances. Being able to track and monitor your earnings and expenses is perhaps one of the most important yet understated tasks to be done. Accountants can also help you with your financial forecasting as well as cash management through their advice after doing an internal audit. Sometimes getting a local accountant is also helpful especially in counties that may have local tax codes that non local accountants are not aware of. In Bridgend, for example, getting a Bridgend accountant is essential as they do know the process for local taxes and are kept abreast of new developments within the county.

Getting to know how your financial health for your business is an essential information and data that must be constantly updated. Each business industry may have different operating styles and the need for cash may be done differently. For example, in the construction business, while the contracts are of big amounts, there are a lot of expenses especially when it comes to construction materials. Construction companies may think they are making a lot of money with the amounts of cash coming in but when the suppliers start handing you the bills for the stuff you purchased from them, the cash going out may even be faster than going. In that sense, the need for good financial forecasting is a prerequisite. In some cases for even bigger contracts, the contract itself may be used as collateral for construction companies to borrow money from banks as part of the operating capital needed for the project. An accountant can help the construction company make a forecast on how much money needs to be sourced from the banks. It is to the interest of the construction company that the less money they need to borrow from the banks, the better as the interest does eat up on the profits. Accountants can also save money for such companies by properly applying the specific expenses to areas that is tax deductible. Sometimes what you consider as a meeting with a potential client is an expense cost which is properly placed helps your bottom line in the end.

Some companies have internal accountants and external accountants. The internal accountants actually take care of the internal operating expenses and earnings of the company and do the financial forecasting and even help in doing the paperwork for any loans to be made. An external accountant deals with the local and other taxes that need to be paid. Some local companies may have one accountant doing both jobs. What is important to note is that companies have to be transparent with accountants so they get the real picture of how your company is and make the appropriate recommendations.

Investing in Staff Wellbeing Even When Business Finances are Tight

You might think that when finances are tight for businesses, staff wellbeing initiatives would be the among the first things to be axed to save money. However, research suggests that this isn’t necessarily true.

A recent survey has shown that businesses feel that investment in staff wellbeing is still worth it, despite, and in some cases because of, the recession. In fact, more than half believe it is ‘more important’ in the current financial climate. These were the findings of research undertaken by the Institute for Employment Studies.

The snapshot research which surveyed 50 employers showed that the issue of wellbeing at work is high on the long-term agendas of a range of companies.

Responses collected from employers in both the public and private sectors suggested that businesses recognise the importance of continuing to focus on staff wellbeing in the downturn, through providing training, improving communication at all levels and through the creation or implementation of solid underlying HR policies.

Claire Tyers, Associate Director leading the Work, Health and Wellbeing research team at the Institute for Employment Studies, commented: “Employers appear to have accepted that improving wellbeing has positive implications for staff efficiency and, ultimately, the profitability of their business. 

“Therefore there is no reason to lose focus on the issue during the recession – in fact the reverse is true – it becomes more important than ever to keep people at work and working at their best when they are there.”

Investing in staff wellbeing

Having healthy staff will actually save you money in the long run. There are a number of cost-efficient ways you can invest in staff wellbeing:

Allow flexible working. Staff allowed to work flexibly often report feeling less stressed. Subsidise fresh fruit or other healthy eating initiatives at work. Offer a flexible benefits package including medical insurance. Research has shown that private healthcare insurance is the second most important benefit to staff, after a pension. Organise office sport teams or a sponsored walk for charity. Improve communication at work and make sure staff know they can speak to someone in confidence if they have any problems. Make sure staff are well trained so that they feel confident and happy in their work.

Investing in staff wellbeing means investing in your business. Cutting back on it when finances are tight could end up being nothing but a false economy.

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Business Finances – Remodel Capital And Finances

Find remodel capital generally refers to business owners researching and comparing the different options available to renovate a place of business. Most traditional lenders do not have funding options designed specifically for remodeling; however, they do offer loans that can be used towards any business purpose. Business owners can also look to independent financial companies for loans. Some renovation companies offer financing for their services.

The most common way to find remodel capital is to obtain a loan from a traditional lender, such as a bank, credit union, or the Small Business Administration (SBA). For small renovation projects cost only a few hundred dollars, a short-term loan is best. These loans may not have as many requirements as long-term loans. Long-term loans should be used when renovation could cost thousands of dollars. Either loan may be secured by a borrower’s collateral or unsecured, in which the lender relies on the borrower’s signed promise to pay. Unsecured loans typically have higher interest rates than long-term loans. Before deciding on a lender and on a loan, business owners should research and compare the interest rates and repayment plans to choose which best suits the business’s needs.

Another way to find remodel capital is to go through the company that is renovating the business. These companies usually have loan programs with better interest rates and repayment terms than other lenders. The specific loan terms vary by company.

Find remodel finance generally refers to business owners looking for ways to fund their renovation projects. Many owners choose to remodel their business to more effectively use available space, attract new customers, and make existing customers more comfortable. Financing is available from renovation companies and lending institutions.

One way to find remodel finance is to find a renovation company that offers financing. The companies generally provide better loan terms and interest rates designed to aid small businesses. For example, renovators may not require any payments to be made until the renovation is completed. The companies usually do not require financial documentation, but they may require a down payment and some type of collateral to securing the funding.

Another source for remodel finance is a lending institution, such as a bank or credit union. While these lenders usually do not provide loans specifically for renovations, they do offer loans that can be used for any business purpose. Common requirements for these loans are personal and business financial documents, credit reports, and, occasionally, a business plan. These loan providers give the best loan terms and interest rates to businesses that demonstrate profitable and stable financial histories.

A way to find remodel finance quickly is to find a factoring company. Factoring companies buy a business’s accounts receivables at a discount. To be eligible for factoring, a business must process credit card orders. Once approved, the factoring company collects the payments from the accounts. Many businesses use factoring because it provides immediate funding and because it is not considered a loan.

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Direct Sales Tips: Take Control Of Your Business Finances

Whether you joined your company for the additional income, the fun and products, or the tax benefits, taking the following steps will enable you to get control of your business finances for higher profits and greater peace of mind.

· Control your spending. Write down in advance what you will need for your business in the coming month. First, focus on business essentials such as catalogs and show supplies. Then be conservative for additional expenditures like buying equipment for your office or supplies for organizing.

· Be creative. Necessity is the mother of invention. Find ways to reduce unnecessary expenses by thinking creatively. Invite a prospect to your home for dessert and coffee rather than taking her to lunch at a restaurant. Make long distance calls to customers and hostesses on your cell phone if your plan includes free long distance minutes. Find new ways to save!

· Get Organized. Disorganization not only costs you time; it costs you money as well! Avoid wasting money on too many copies or duplicating forms by organizing your files. In addition, have a place in your wallet and a file in your desk where you place receipts for business expenses. Imagine the thousands of dollars in tax-deductions you may have missed simply because you did not keep a receipt.

· Track every business expense for the month. At the end of each month, total what you have spent on your business. Consultants who are maximizing tax benefits keep two totals: “Essential Expenses” and “Maximized Write-Offs” so they can see the additional benefits they are enjoying from their legitimate home-based business expenses. Write the highest total on the outside of a 9X12 envelope for each month.

· Track your income. List all your income for the month on the outside of the envelope as well. These will include Retained Profits (the 30-36% you keep from each show), Overrides (the amount earned on your team’s sales volume), and Bonuses (kit and volume bonuses).

· Compare income to expenses. Subtract your expenses from your income and evaluate the results. Keep in mind that if you are maximizing your tax benefits by writing off every legitimate expenses you would incur whether you had a business or not, you may show a loss that does not truly reflect the profitability of your business. This saves you tax dollars!

· Make necessary adjustments. How can you reduce expenses next month? Are there expenses, such as mileage that you are not taking advantage of? How can you increase your income next month? These questions will help you get greater control of your business finances and give you a feeling of confidence and success!

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Gain Control Of Your Business Finances

Business finances and expenses can easily spin out of control and cause you, the business owner, and a lot of undue stress. So if this is you, how do you gain back financial control? The key to getting yourself back on your feet is to go over your business plan with a fine tooth comb or start your business plan from scratch. Begin with your budget and all of your expenses. Scour over your accounting records in detail. Record where your money goes. Who are you paying and what amounts? Are all of the expenses necessary or can there be cut backs or changes made for profit? Ask yourself these questions everywhere throughout your business plan.

Once you have gone through your business plan you may find that unnecessary money is being spent on business lunches or travels. Maybe there are other shipping options that are less expensive and just as dependable. These are the areas that can slowly get you back on track with your finances. Once you know whom you are paying and what changes are to be made, don’t wait until tomorrow start them today.

If you are a business owner who is being swamped with credit card debt, get this under control. Speak to the credit card company and create a payment plan. Begin taking down these debts so that the interest rates aren’t draining your budget dry. Perform this same method with your entire out going payments. If it still seems too overwhelming you can contact a bill consolidation firm. They can help you go over all of this information and create a plan to get you back on the right financial path.

The key is not to panic and don’t just give up and become overtaken by debt and financial strife. There is a way out. It may be slow at first, but progress is often slow moving. In a world where we want it now, it can be difficult. So don’t lose focus of your goal. The goals of gaining back your business life and control over your finances. You’ll be able to lead a healthier and much more peaceful life once you are back in control of it. Don’t wait and put this off until another day. Sit down in your office chair and get your business plan and accounting records in order. Review, study and give yourself the start to gaining back financial control. You can solve your troubles with a little motivation and want. Think about the relief that will come with being back in control? It almost makes you want to sigh aloud. Take that first step towards the path to financial control and a happier and healthier business life.

Alex talks with regular Friday guest, Bob Chapman, publisher of the International Forecaster, a compendium of information on business, finance, economics and social and political issues worldwide. Starting in 1967 Mr. Chapman began writing articles on business, finance, economics and politics having been printed and reprinted over the years in over 200 publications. Websites to check out: sevenload.com prisonplanet.tv http prisonplanet.com http dailypaul.com http davidicke.com http theinternationalforecaster.com http glennbeck.com FAIR USE NOTICE This video may contain copyrighted material. Such material is made available for educational purposes only. This constitutes a ‘fair use’ of any such copyrighted material as provided for in Title 17 USC section 107 of the US Copyright Law.

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Some Simple Tips On How To Manage Your Business Finances

Many home based business owners are very weak when it comes to financial management for their business. Many end up spending every dollar they earned into wasted venture or resources. If you want to achieve success from your home business, you should spend some time learning or picking up important skills that will allow you to manage your money wisely. Without these essential skills, you can easily get trapped or buried in debts.

You don’t have to go to an expensive business school to get a finance degree to be able to manage your home business finances. You can use the ‘how-to-be-penny-wise’ technique; the key here is learn to be frugal. Don’t spend more than you earn! Invest your eanings wisely and make sure that your business has a healthy cash flow. When you know how to be frugal, you can keep your business running even in bad economy climate.

Stop buying one products after another that promise to give you the latest techniques of making more money. For instance, in internet marketing business there are a lot of rehashed or regurgitated products – they just teach you the old same concept or technique by using a different style or method of teaching. So, beware of such products. Just choose one system that works and stick with it.

Often, people end up in loads of debts because they impulsively shop for things they do not need. They buy high-end computers, get a brand new car, and go on expensive vacations because they think they can already afford it. Earning profits in your home business does not mean you have the right to spend it all away. Again, remember to be frugal!

You should learn not to buy things using your emotions. When you see there is an offer that looks good, do not buy it immediately or impulsively! Ask yourself this question first… “Does the offer fit into your overall business strategy and plan?”

If you answer the question honestly, you will be able to see any offer in a new perspective. Many products or offers only look good on a sales letter, when you purchase them, they don’t deliver what they have promised in the sales letters. So again, don’t get emotional when you are reading a sales pitch. Always ask yourself how can this help in your current situation? And why do you need it?

By always asking why you need what a particular product has to offer, you stop your emotional urge to buy and put on your true entrepreneurial thinking cap. This is how you stop buying one shiny offer after another. Stop buying one product after another can also help you to focus on your business. Many people jump from one technique to another and end up getting overwhelmed by information or information overload.

Live within your means.

Every business has expenses; this is the reality and expenses always keep up with your income. A successful business owner may be earning a six figure income every month but you would be surprised to know that big income earners who do not have solid financial management abilities also have big debts. Save and invest wisely, and live exactly the way you did before you started raking in more money. You can reward yourself every now and then but NOT too lavishly on a regular basis.

Learn the skill to get something at a much lower price.

Most people probably don’t know this but you can save a lot from using comparison sites on the internet. From buying products to travel tickets and even hotel bookings, online comparison sites are very helpful in giving us information regarding where to purchase products and services at a much lower rate.

Haggle for prices.

Buying office supplies and equipment can be expensive, and will take a large chunk of your startup capital. But you can actually save money by haggling for better prices. Just talk to the owner and find out if he can give you a better offer. Alternatively, you can also buy wholesale, as rates are always cheaper when you buy in bulk.

Avoid buying brand new equipment and furniture.

You do not always need top-of-the-line equipment when you are just starting with your home business. You can perhaps spoil yourself a bit on these things when your business grows and become profitable but in the meantime, make do with what you can afford. Buying used equipment as long as it is in excellent condition is fine. You can easily save hundreds, if not thousands of dollars when you buy used items. Buying used furniture from garage sales can also help you save money. The savings you get can be used for other more important things such as marketing your business.

You see, financial management for your home business is not a rocket science; you just need to exercise some common sense. Anyone can manage their business finances wisely if they apply some common sense and spend their money wisely.

Hope you find this article useful. Thanks for reading.

Alex talks with regular Friday guest Bob Chapman, publisher of the the International Forecaster newsletter, a compendium of information on business, finance, economics and social and political issues worldwide, which reaches 10000 investors and brokers monthly. Chapman became a stockbroker in 1960 and retired in 1988. For 18 of those years he owned his own brokerage firm and was probably the largest gold and silver stockbroker in the world during that period. Starting in 1967 Mr. Chapman began writing articles on business, finance, economics and politics having been printed and reprinted over the years in over 200 publications. He owned and wrote the Gary Allen Report, which had 30000 subscribers. Alex also covers the latest news and takes your calls.